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APLand's property development will take centre stage in generating future profits for the Low Yat Group.
ASIA PACIFIC Land Bhd (APLand), the listed property arm of the Low Yat Group, is well known for building commercial properties such as the prestigious City Square Centre in Kuala Lumpur. That emphasis, however, may soon change. Says APLand's managing director Jeffrey Ng, `While City Square is our foundation, we are moving into another phase, that of high- yielding ventures - developing houses for sale.'
In an interview with Malaysian Business, Ng says property development will take centre stage in generating future profits for the group. While the bulk of APLand's earnings now come from investment properties, `In three to five years from now, the contribution from property development will represent 60 to 70 per cent of the group's profit before tax,' says Ng.
City Square Centre is at the core of APLand's investment properties and comprises City Square itself, a shopping complex, Empire Tower (office space) and the Crown Princess Hotel (a five-star hotel). A five per cent yield from this property has been giving APLand a steady though not phenomenal growth in profits.
Enter Bandar Tasik Puteri, APLand's first housing development project aimed at becoming their new profit-generating vehicle. For the next 10 to 12 years, the company will be busy developing the township at its huge landbank in Rawang, Selangor, churning out 500 to 700 units per annum.
But Ng remains cautious, `Of course, the exact number of units and their prices will depend on the market conditions.' But when the market recovers, Ng says APLand will be there to reap the profits. `When the good times come, we will be able to reap profits like what companies such as Sime UEP and IOI Properties have been able to...